Students on edge as US President Donald Trump's administration eyes easing student debt protections

byJokpeme Joseph Omode -
0
US President Donald Trump smiles at students at a school choice event with Education Secretary Betsy DeVos in the Roosevelt Room of the White House, May 3, 2017, in Washington, DC. (Photo by AFP)
Thousands of students who ran up unpayable debts at for-profit schools are anxiously waiting to see if US President Donald Trump's administration does away with anti-fraud protections put in place by his predecessor Barack Obama.
Some 95,000 cases of former students seeking forgiveness of their debt have been put on hold by the Department of Education, now led by Betsy DeVos, an ardent advocate of for-profit, post-secondary schools.
Most of the cases now on hold involve former students at two giants of the for-profit college industry -- Corinthian Colleges and ITT Tech, which closed in 2015 and 2016.
Students claim they were lured into enrolling in training programs by promises of jobs and diplomas that later proved worthless.
"They laughed at my diploma," said Danielle Adorno, describing the reaction of prospective employers.
The 30-year-old New Yorker wanted to become a baker so she borrowed $25,000 to pursue "culinary studies" at the Art Institute, a private group that ran several schools in the United States, including the one in New York that she attended.
As she tells it, admissions officers used "deflection tactics" to persuade her to enroll, withholding information about graduation rates and how many graduates went on to find jobs.
After nine months of training, Adorno is disillusioned, and has asked the Education Department to forgive her debt.
A rule change made in 2016 under former president Barack Obama allows the Education Department to forgive a student's debt, and then sue the for-profit to recover the money.
The situation came to a head in 2015, when Corinthian Colleges filed for bankruptcy, after receiving a fine from California of $1.1 billion, and a federal one of $30 million for making false and deceptive statements.
At issue now is whether the rule change will be reversed or modified under DeVos, who has ordered a review and frozen the loan forgiveness process.
No requests for student loan forgiveness have been approved since January. The Education Department says it is overloaded with a backlog.
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Jokpeme Joseph Omode

Jokpeme Joseph Omode stands as a prominent figure in contemporary journalism, embodying the spirit of a multifaceted storyteller who bridges history, poetry, and investigative reporting to champion social progress. As the Editor-in-Chief and CEO of Alexa News Network (Alexa.ng), Omode has transformed a digital platform into a vital voice for governance, education, youth empowerment, entrepreneurship, and sustainable development in Africa. His career, marked by over a decade of experience across media, public relations, brand strategy, and content creation, reflects a relentless commitment to using journalism as a tool for accountability and societal advancement.

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